Australian wages continue to grow, with the Wage Price Index (WPI) rising 0.7% in the March quarter in seasonally adjusted terms and 2.4% on the year.
The Australian Bureau of Statistics said wages in the private sector increased by 0.7% and in the public sector they increased by 0.6%.
With inflation at 5.1%, the new data should spark new debates around “real wage growth”.
The ABS publishes the quarterly index, which measures changes in wages and salaries over time, independent of changes in the quality or quantity of work performed.
The primary purpose of the WPI is to measure the effect of inflation on wages and salaries, and is a key economic indicator used when evaluating monetary policy.
From the Reserve Bank of Australia (RBA) From a record low of 0.1 percent in May, with inflation being one of the factors, inflation versus wage growth was a key topic during the election campaign.
Treasurer Josh Frydenberg said in April Australia’s jobless rate remained low at 4%, but the Opposition said jobless rates don’t tell the whole story and “real wages” should be the focus.
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Australia Institute senior economist Matt Grudnoff said in April that while employment rose slightly, “total hours were down” and “underemployment remained significantly above average.” ‘job”.
Opposition Leader Anthony Albanese has campaigned to increase real wage growth, arguing that inflation and the cost of living are too high for low-wage Australians.
Inflation in Australia is 5.1% and Mr Albanese wants to raise wages by the same amount, which he says equates to around $1 an hour for minimum wage jobs.
Prime Minister Scott Morrison branded Mr Albanese a ‘loose unit’ on May 11 for backing wage hikes, but as the date of the election draws closer with mounting pressures on the cost of living, he has said he was pleased with the increase in wages.
